Matt Goldberg: I mean you asked about advertising take rate in Viator. I would make the point that we have programs that are intended to help quality operators get the most exposure on our platform. And those programs are obviously delivering our take rate, and it’s increasing. And that’s because they are seeing performance and the teams are very focused on continuing to drive that. And I think we’re really pleased with the number of operators that are taking us up on that. I don’t think we’ve necessarily put any of those, we’ve quantified it in the past and I don’t think we intend to. But what I would say is it’s very healthy.
Operator: The next question comes from Jed Kelly from Oppenheimer.
Jed Kelly: Great. Thanks for taking my question. Two, if I may, just one on the core auction. Did you notice any difference in bidding behavior in certain geographies by some of your partners? And then then just moving back to the Viator advertising? A couple of things on that. How should we think about investing in two brands, Viator and Tripadvisor experiences? And can you give us any metrics around your CAC payback on Viator? Thanks.
Mike Noonan: Yes, I’ll take the first one. As I said in my earlier comments to James, we don’t comment specifically on obviously partner bidding behaviors other than to say Q1 was an expected quarter, and we saw pretty consistent to our expectations, which is strong volumes, but declining year-over-year, right, as we move through the quarter, as we lap, that comp and pricing still remain strong. The pricing year-over-year benefit, we do expect to moderate as we move into Q2, but as we see it, it was kind of an expected quarter from our auction business in general. So we feel pretty good about that.
Matt Goldberg: And on Viator advertising, I think what you’re all getting at is the brand spend. And so obviously we’ve been investing both to acquire new customers, to build out the brand, to drive awareness in the categories. And obviously we’re doing that because we’re very excited about the shift we’re seeing in the potential for stronger unit economics. And so what that means, first of all, we’re always going to have fiscal discipline when we evaluate brand spend, and we’re going to look at the data, and the data is suggesting that our awareness and consideration are growing. We’re getting a really strong indication from brand search SEM clicks and it represents a more efficient path to be thinking about mid and upper funnel as we also think about that lower funnel. So we like what we see there. We’re always going to be looking at the data and we will optimize what we think will drive us to leadership in the category.
Mike Noonan: Yes. And I guess the last part of your question was on kind of like paybacks LTVs. We’re obviously not going to comment on that level of detail. I would just say, Jed, we’re very focused on what unit comments look like in this category and they dictate a lot of ways how we think about our phasing and how we spend both in performance channels as well as in brand. And again, I think continue to leaning into the opportunity because we continue to see good unit economics. As you know, we do think about these things on an LTV basis as we look at and a key metric is that repeat rate as to the things I highlighted in my pre-prepared remarks, we like the repeat rates we’re seeing. They’re improving. We like how they’re coming back to us through channels that are either free or at a much more efficient basis.
Creating that sticky client base is very important. So we do see the investment, the upfront investment, the merits of the upfront investment versus the payback larger down the road. And I think that we know that scale is really important in these businesses and it’s really important in marketplaces. And as we drive to scale benefits, we feel pretty strongly that those are important for long term winning in this category and we’ll continue to kind of view it that way.
Operator: The next question comes from Mario Lu from Barclays.
Mario Lu: Great. Thanks for taking the questions. The first one is on Viator. You mentioned April growth is over 60% but expected to step down the next couple of months. So just curious if you could give some color on last year’s spend. How much of a tougher comp was May and June compared to April?
Mike Noonan: Yes, I would say May and June was when we really start picking up into the main season for the experiences by sometimes that’s closer in to become longer out. So last year was a meaningfully tougher compare in those two months for Viator, which is why our commentary of April was still very healthy growth rate, but expected to moderate as we move through the quarter. And a lot of that again is just seasonal buying last year for the product. So not really providing more specific color on a month by month basis than that, but we are expecting it to moderate as we move into the quarter.
Mario Lu: Great, thanks. And in terms of the full year EBITDA margin guidance, good to hear that it’s being maintained flat year-on-year for core in total. Just curious, is there any kind of level of revenue growth kind of embedded in there to kind of hit those targets? Thanks.
Mike Noonan: Yes. So on our last call, we said that we had a target to grow in line with broad industry participants and markets, which we did further clarify. That was kind of mid-teens, around 15%. We haven’t updated that, but our position hasn’t changed in that. So we still feel, again, as both Matt and I emphasize, executing on plan that we outlined a few months ago.
Operator: The next question comes from the line of Stephen Ju from Credit Suisse.
Stephen Ju: Right. Thank you. So I think in your prepared remarks, you talked about improvements rolled out to Viator in terms of the presentation and I guess partly what the consumer is seeing in the search results. So can you elaborate on that a little bit? Because it seems like improvements like this don’t just end in one quarter, but continue to, I guess, get you benefits on an ongoing basis. Thank you.
Mike Noonan: Hey, Steven. I’ll kick that off. And Matt can provide any additional color. So, just to clarify, the comments were related to what we’re seeing in Tripadvisor Core experiences, right. And around conversion improvements. And I think what’s important there is that we are excited about. And Matt talked about this in the call. We’re excited about what this channel can do as we think about our overall experiences opportunity. And that comes in a couple of forms. We did say that our ability to monetize a massive traffic base that we have here at Tripadvisor is very important. And we’re doing that primarily through free traffic in our Tripadvisor Core channel for experiences. So that traffic, that free traffic, our ability to attract that free traffic when the experience is product is very important.
That’s one. Two, getting directly to your question around conversion improvements. I think what you’re seeing is that as we continue to think about our experiences opportunity as a whole, we’re looking at both channels Viator and what we’re doing at Tripadvisor Core, right? And because you can book that product on Tripadvisor Core and are really thinking about porting over different wins at different channels and how we think about conversion improvements across both channels. And so I think the comment is reflective of us being able to look at some improvements we’ve had at Viator and applying those at our channels at Tripadvisor Core. And we’re excited to see that things around how we’re getting better at a Tripadvisor channel to present the right experience to the right individual improves on conversion rates.
So this is just the hard blocking and tackling of funnel optimization that we’re excited that we are making progress there.
